Senate Banking & Insurance Reports on Insurance Regulatory Oversight Reorganization Options
Nov 1, 2008
The Florida Senate Banking and Insurance Committee has published an Interim Project Report entitled “Options for Reorganizing the Department of Financial Services and the Financial Services Commission.”
The Financial Services Commission (“FSC”) and the Office of Financial Regulation (“OFR”) are responsible for regulating state-chartered financial institutions and other financial service entities. The FSC and the OIR are responsible for regulating insurance companies and other risk-bearing entities licensed in Florida.
However, the Florida Department of Financial Services (“DFS”) also has statutory duties relating to the regulation of insurance, including regulation of insurance agents; court appointment as receiver or rehabilitator of insolvent insurers; administration of the workers’ compensation insurance act; the appointment of the Insurance Consumer Advocate, and administration of the Division of Insurance Fraud.
This bifurcation of insurance regulatory responsibility between the Florida Office of Insurance Regulation and the DFS was a compromise resulting from competing views of having insurance regulated by an appointed official versus a statewide-elected official.
This Report presents options for reorganizing the DFS and the FSC. The Report objectives are twofold: to present options for merging all or most of the functions relating to the regulation of insurance under a single agency head, and to transfer programs to agencies performing similar functions to increase the overall efficiency, effectiveness, and accountability of the programs.
To view the Report, click here.
Should you have any comments or questions, please contact Colodny Fass.
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